The online home shopping market is set for a new wave of expansion on the back of the Covid pandemic, and is forecast to triple in value by 2025 to be worth $1.4 trillion (£1tn) worldwide – the total value of products sold across all retail channels in 2015.
According to Euromonitor International, China and the US will account for the lion’s share (55%) of that value growth in ecommerce opportunities. Meanwhile Latin America, which posted the strongest growth of any region with a 60% jump in goods sold online in 2020, is also expected to continue to expand.
Clothing and footwear is expected to drive the greatest value growth over the 2020-2025 period, followed closely by food and drink, with the former playing catch-up and the latter continuing its growth sparked by Covid lockdowns, according to the report.
Digital sales in the fashion industry are expected to continue their growth trajectory post-pandemic, increasing in both percentage share and actual terms, though slower than anticipated due to the pandemic.
Overall, sales of clothing and footwear fell by 19% in 2020, with growth in the fast-expanding ecommerce channel due to slow to 3% in 2021, down 20% from the previous year, according to Euromonitor.
The digitally inspired changes go beyond just channels, though. Over the past decade, the digital revolution has seen the rise of a more fragmented retail landscape. Marketplaces, direct-to-consumer brands, social commerce, live selling and voice commerce are just some examples of how the market has diversified to reach the end-consumer.
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